Disliked{quote} Central Banks will only raise interest rates if the economy is good and inflation is picking up. During a financial crisis, the reverse happens. Economies falter and experience deflation. In such a case, governments typically reduce interest rates in hope of encouraging people and businesses to spend, this will in turn spur the economy. In theory, interest rates can only go to zero, but Japan has done a neat little trick with negative interest rates (That will be another chapter if i were to elabourate). During the 2008-09 financial crisis,...Ignored
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